Netflix Owns 61% of Digital Movie Market
If you're planning to pay for the delivery of a digital movie to your home, odds are strong that you're paying Netflix for the privilege. A new NPD Group study tells us that Netflix holds a whopping 61% of the digital movie market. That's fairly impressive in and of itself, but the complete scattering of the rest of the market is remarkable as well.
The next largest player in digital movies is Comcast, which is sitting way down at only 8% share. Behind them is a three way tie between Apple, DirectTV, and Time Warner with each owning a paltry 3%. Netflix use is skyrocketing, and the companies new streaming-only plan is a big part of that. Nearly a third of new subscribers are choosing that option.
Despite the sometimes lacking content on Netflix, this study shows consumers are finding enough they like to stick with the service. A la carte options like iTunes may have their devotees, but Netflix is running away with this one. Do you think Netflix is in for a rude awakening, or will the trend continue?
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Trestoncobbs
March 16, 2011 at 11:00pm
Netflix works GREAT for me. I pay for broadband and got rid of cable service. I use my PS3 to stream in one room, Bluray player in another and PCs in the rest. I do however get discs in the mail also. Honestly, my family doesn't watch enough tv for lack of content to be a problem. The only way I forsee Netflix failing is if all the studios collectively decide to back a single other streaming service. AND that service has to be comparably priced.
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Ruins
March 16, 2011 at 6:37am
I used to be a Netflix customer, but quit when they raised their prices on DVD/Bluray subscription plans. Streaming is useless where I live. The fastest broadband provider in my neighborhood is DSL by Qwest. Tested speed: 1.3 mps. Netflix streaming is awful at that speed. Now I get my movies at Redbox and could not be happier.
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Pleekmo
March 16, 2011 at 2:48am
With AT&T about to impose metered Internet usage, I suspect that many (probably most nearly all) ISPs will follow with metered usage. This will result in a reduction in Netflix usage and may result in a reduction in the number of subscribers as well if they find that they cannot afford Netflix use because such use may improve their chance of exceeding ISP bandwidth caps. This trend will likely become aggravated as greedy ISPs begin to impose more constricted caps.
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stige
March 15, 2011 at 8:54pm
I'm curious about people who complain about the quality of the movies. I stream through a WD TV Live + to a Samsung PN50B550 50" Plasma with no discernable difference from a DVD. audio quality has been spotty lately but I think that's the ED TV Live's fault since it just started after a firmware update.
Netflix's trouble is and has been the availability of titles. However, I think people are a bit too critical of this issue. Really, any system that can break up the cable companies monopolies in different markets is a GOOD thing!
If Netflix can get enough people on their service to convince the Studio's that we'd be a good source of revenue than they'll get the rights to stream the shows we all want in a timely fashion. Get all your friends and family to sign up! Hah.
My family has no problem finding content to watch but I sometimes chaffe when I see something available on Comcast OnDemand that's still not on Netflix. Generally, setting up series recordings on the DVR takes care of this. If not, well my life won't be poorer for missing an episode of TV. I'm busy enough as it is.
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aarcane
March 15, 2011 at 7:16pm
I pay netflix too much to have access to their streaming. the video quality is complete crap, and if I want to watch a blocky movie moar than once, I have to download it twice. I get a better value for my buck from their DVD offerings. rent once, watch many.
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tony2tonez
March 15, 2011 at 6:27pm
I canceled my Netflix account because i wanted to stream movies. I dont care waiting 28days, if i didnt bother seeing it in the theaters then another 28 days wont matter. But what sucks most about Nexflix is there quality of choices for Streaming. So many movies i look for are not available for streaming. Its the whole reason why i had netflix. If i wanted a dvd i would go to redbox. But i like the concept of getting 'any movie' when i felt like watching it. Til i found out that 'any movie' meant only what they had.
I liked the concept of it but i am not going back until their streaming selection drastically approves.
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jackal49
March 15, 2011 at 4:19pm
Netflix did it right, but it can be done better. I can't wait for the next new service to offer more content and better speeds. I can use Netflix on almost every device in my home like WD TV, Xbox 360, PS3, Wii, Blu ray plaers, HTPC, etc. Netflix started off great by saturating the market and buying up as much content as it could. But let's face it, Netflix is slow. I have a fiber connection and I have yet to stream a program in HD. It tell me HD is available, but I can't stream it. I only rent movies anymore because Some studios have a 28-day wait period before the movies can be streamed as to not take a hit in DVD sales. I've always felt DVD and Blu ray were too expensive. I think Netflix has set the standard. However, two things need to happen: They need a faster algorithm for streaming(which they're improving constantly) and ISPs need to remove these stupid caps. They started it becuase of Torrent users and power downloaders. But now, ligitimate streaming is taking a hit.
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Tekzel
March 15, 2011 at 4:47pm
Thats odd, I replaced my cable service last November with a Netflix streaming account via a Roku box and have watched a bunch of HD content with almost no problem. I can probably count on one hand the number of times it has rebuffered or swiched from an HD stream to a lower one.
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jaygregz
March 17, 2011 at 1:46pm
Yeah.. definately something wrong on your end. I have a 18mb/sec connection and all my shows/movies load up in HD.
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someuid
March 15, 2011 at 3:13pm
I don't know what is going to happen, but I hope the trend continues - Netflix gets more users and streams more movies and shows. This will eventually get all those movie rights holders reason to jump onto the Netflix bandwagon and starting getting some money for the trove of video they are sitting on.
Does anyone else find it amazing how an industry - TV, movies, music - who's business it is to produce and sell entertainment media, spend so much time wrapping it up and locking it behind hard-to-use, expensive paywalls?
Netflix has done more to open up on-line movies and TV than any other company out there. I hope they keep slamming away at Hollywood's ignorant viewpoint of the future.
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